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Project Investment Required Present value Life of the Internal of Cash Project Rate of A $ 180,000 Inflows $209,323 (years) Return 7 21% B
Project Investment Required Present value Life of the Internal of Cash Project Rate of A $ 180,000 Inflows $209,323 (years) Return 7 21% B $ 141,000 $ 182,000 12 19% $ 104,000 $ 140,035 7 20% D $ 175,000 $ 218,136 3 16% The net present values should be computed using a 10% discount rate. The company wants your assistance in determining which project to accept first, second, and so forth. Required: 1. Compute the profitability Index for each project. 2. In order of preference, rank the four projects in terms of net present value, profitability Index, and Internal rate of return. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the profitability index for each project. (Round your answers to 2 decimal places.) Profitability Index Project A B C D
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